Business Confidence Rises Despite Economic Challenges

The Overseas Investors Chamber of Commerce and Industry (OICCI) has unveiled the findings of its latest Business Confidence Index (BCI) Survey, conducted during October and November 2024. The results indicate a remarkable improvement in Pakistan’s business environment, with the index climbing by 9 percentage points since the last survey in March-April 2024.

From Negative to Near Positive

The Business Confidence Index now stands at -5%, a substantial leap from -14% reported earlier in the year. This is the most encouraging shift in recent times, signaling gradual economic recovery and enhanced optimism among stakeholders.

Key Drivers of Optimism

OICCI attributes this positive momentum to several critical factors:

• Economic Growth: Sustained improvements in GDP performance have bolstered confidence.
• Stable Exchange Rate: A steady currency has reduced financial unpredictability for businesses.
• Lower Inflation: A noticeable dip in inflation rates has eased operational costs and improved purchasing power.

Sector-Wise Breakdown

• Services Sector: The standout performer, showing the most substantial gains in confidence, reflecting robust activity and investment.
• Manufacturing Sector: Improved significantly, with its index moving from -15% to -3%, indicating a resurgence in industrial activity.
• Retail and Wholesale Sector: Contrary to the upward trend, this segment recorded a decline, with its index dropping to -18%, highlighting ongoing challenges in consumer-driven businesses.

A Broader Context

Earlier, OICCI’s March-April survey reported a 4% improvement in the BCI, though it remained in negative territory. The latest results suggest a more significant turnaround, offering hope for sustained economic recovery despite persistent challenges such as political instability and global market volatility.